REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #4

 

BOONE AND WINNEBAGO  COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the
Single Audit Act and OMB Circular A-133)

 

For the Year Ended:

June 30, 2006

 

Summary of Findings:

Total this audit                          2

Total last audit                          2

Repeated from last audit           2

 

Release Date:

April 12, 2007

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

SYNOPSIS

 

·        The Regional Office of Education #4 did not comply with certain statutory administrative requirements.

 

·        The Regional Office of Education #4 did not maintain adequate controls over property records and transactions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        {Expenditures and Revenues are summarized on the reverse page.}


 

                                                                                   

REGIONAL OFFICE OF EDUCATION #4

BOONE AND WINNEBAGO COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2006

 

 

 

FY 2006

FY 2005

TOTAL REVENUES

$6,381,859

$6,778,458

Local Sources

$1,205,679

$1,189,854

% of Total Revenues

18.89%

17.55%

State Sources

$3,090,596

$2,942,690

% of Total Revenues

48.43%

43.41%

Federal Sources

$2,085,584

$2,645,914

% of Total Revenues

32.68%

39.03%

 

TOTAL EXPENDITURES

$6,077,003

$6,344,480

Salaries and Benefits

$2,905,368

$2,819,943

% of Total Expenditures

47.81%

44.45%

Purchased Services

$2,226,724

$2,247,705

% of Total Expenditures

36.64%

35.43%

All Other Expenditures

$944,911

$1,276,832

% of Total Expenditures

15.55%

20.13%

 

 

 

TOTAL NET ASSETS

$3,576,464

$3,271,608

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$67,781

 

$58,229

         Percentages may not add due to rounding

 

REGIONAL SUPERINTENDENT 

During Audit Period: Honorable Richard Fairgrieves

Currently: Honorable Richard Fairgrieves


 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #4 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #4 did not maintain adequate controls over property records and transactions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

             The Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent to examine at least once each year all books, accounts, and vouchers of every school treasurer in his educational service region, and if he finds any irregularities in them, to report them at once, as directed by the School Code. 

 

             The Regional Office did not examine at least once each year all books, accounts, and vouchers of every school treasurer in the educational service region.  Regional Office officials noted they believe the mandate is outdated and that they are satisfying the intent of the statute by other reviews they undertake.  This mandate has existed in its current form since at least 1953.

 

         The Illinois School Code (105 ILCS 5/3-5) also requires the Regional Superintendent to present under oath or affirmation to the county board at its meeting in September and as nearly quarterly thereafter as it may have regular or special meetings, a report of all his acts as county superintendent, including a list of all the schools visited with the dates of visitation.  This mandate has existed in its current form since at least 1953. 

 

         The Regional Office did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all his acts including a list of all the schools visited and dates of visitation.  The Regional Superintendent submitted to each county board his annual report and presented the budget to the Boone County board on September 8, 2005 and to the Winnebago County board on September 29, 2005.  The annual report included statistics on major areas of activities of the ROE, including the inspections of school buildings within the region.  Details of the dates of visits and other statistics are provided upon request.   

 

         Finally, the Illinois School Code (105 ILCS 5/3-14.5) requires the Regional Superintendent to visit each public school in the county at least once a year, noting the methods of instruction, the branches taught, the textbooks used, and the discipline, government and general condition of the schools.  This mandate has existed in its current form since at least 1953.

 

         The Regional Office of Education performed compliance inspections for each public school in his region on a rotational basis every three years instead of annually.  The Illinois Public School Accreditation Process Compliance Component document completed at these visits includes many of the items delineated in 105 ILCS 5/3-14.5, but does not include a review of the methods of instruction and the textbooks used in the district.  (Finding 06-1, pages 12-14)   

 

         The Regional Office accepted the recommendation to comply with the statutory requirements.  The Regional Office responded that with regards to compliance with 105 ILCS 5/3-14.11 and 105 ILCS 5/3-14.5, the Illinois Association of Regional Superintendents of Schools and the Illinois State Board of Education have agreed to seek legislation to remove duplicative and/or obsolete sections of the Illinois School Code.  Both parties believe that 105 ILCS 5/3-7 of the Illinois School Code and 23 Ill. Adm. Code 1.20, respectively, contain more current, thorough and comprehensive requirements concerning a public school district’s financial transactions and visitation of public schools by the Regional Superintendent.  As a result, the two parties working together will seek legislation to repeal these two sections of the Illinois School Code. 

 

         With regards to 105 ILCS 5/3-5, the Regional Superintendent stated that he meets with members of the Boone County and Winnebago County boards to present budget requests and related information.  The ROE’s annual report is presented to both county boards in December.  The Regional Superintendent is available for any other meetings deemed necessary by the county boards.   

 

 

CONTROLS OVER PROPERTY RECORDS AND TRANSACTIONS

 

            The Regional Office of Education #4 did not maintain adequate controls over property records and transactions.  During the testing of 10 property items from the property listing, auditors noted that the serial numbers of 5 items were not in the property listing and the serial numbers of 2 items did not match the serial numbers in the property listings. 

 

            Also, in a detailed testing of equipment purchases, there were two computer purchases for business partners/staff totaling $3,756 that were incorrectly recorded or not reimbursed in a timely manner.   One purchase for $1,223 was paid by the ROE on September 22, 2005 and not fully reimbursed by the business partner/staff until December 20, 2005.  In the other instance, a computer purchase for $2,533 was recorded as a capital expenditure when paid by the ROE and as service income when the reimbursement was received.  The transaction should have been recorded as a receivable.

 

            The Regional Office of Education Accounting Manual requires each ROE to maintain detailed fixed asset records for both accounting and insurance purposes for fixed assets costing $500 and above.  Generally accepted accounting principles require that an inventory of all fixed assets be maintained and property records be updated to reflect all existing items as of year-end.

 

             Sound business practices also require that disbursements made as an advance be reimbursed on a timely basis.  Generally accepted accounting principles require that these transactions be accounted for with no net asset effect. (Finding 06-2, pages 15-17)

 

            The Regional Office accepted the recommendation stating that it will continue to work to improve and refine the inventory control system and that there is total awareness of the importance of having a completely accurate fixed assets list. 

 

 

AUDITORS’ OPINION

 

         Our auditors state the Regional Office of Education #4’s financial statements as of June 30, 2006 are fairly stated in all material respects.

 

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM:ro

 

SPECIAL ASSISTANT AUDITORS

 

         Our special assistant auditors were E.C. Ortiz & Co., LLP.